Changing market provides opportunities• The fast changes in the market and
consumer behaviour implies opportunities for Clas Ohlson− both in the short-term and long-term
• We are building on our strong position and brand in the Nordics
• We are continuously developing our customer offering, customer meeting, and sales channels− both in the short-term and for the future
4
Solid Q3 sales development• Solid sales development in a fast
changing retail landscape− significant growth in online sales and traffic
• Extra commercial activities including increased marketing spend and margin investment
5
Development by country• Sweden increased sales by 1%• Norway grew sales by 7% in local currency • Finland grew sales by 7% in local currency• Outside Nordic countries solid development
− high traffic and sales development in our e-com in UK
− Hamburg stores developing well− franchise agreement terminated and
the 2 stores in Dubai were closed
6
7
Cooperation with MatHem.se• High speed in the strategic collaboration
with MatHem, Sweden's largest online grocery store− selected parts of our product range being
offered via MatHem's digital platform− customers who buy via our e-com will be able
to choose to have products delivered home to the front door via MatHem.se
• First customer orders are expected to be delivered within a few weeks
8
Cooperation with Telenor• In March a cooperation with Telenor was
kicked off in selected stores in Sweden• Initially a pilot project where Telenor offers
sales of products and services at a dedicated area in store with own sales staff
• A step towards offering a more complete solution in a specific product area
9
Click & Collect launched• In February Click & Collect was launched
across Norway• Initially positive response • A step towards offering a more convenient
way of shopping for Norwegian customers
10
Plan for future growth• Keep high speed in strategic overview
− Focus on growth in every aspect− Assessing potential in Nordic markets− New business models being evaluated
• New strategic plan to be presented at Capital Markets Day on 3 May in Stockholm
2,2382,375 2,482
2,695 2,746
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
Sales Q3• Sales 2,746 MSEK, up 2%
− Sweden +1%− Norway +1%− Finland +9%− Outside Nordic countries -5%*
• Sales up 4% in local currencies − Up 1% LFL sales growth
• 11 additional stores net compared to end of period last year (8)
MSEK
*Effected by store optimisation in the UK
12
+2%
96120 122
93 88
Q313/14
Q314/15
Q315/16
Q3*16/17
Q3*17/18
26 2831 33
36
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
1,042 1,0561,127
1,177 1,194
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
Sales development per market
MSEK MEUR
*Effected by store optimisation in UK
SwedenNorway
FinlandOutside Nordic countries
+1%
13
814886
9561,025
1,094
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
MNOK+7%
MSEK
+7%
43.7 44.2 43.7 41.8 40.8
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
Gross margin Q3• Gross margin down 1.0 percentage point
to 40.8%• Negatively affected by the weaker NOK,
the stronger USD, and increased commercial investments
• Partly offset by currency hedges (NOK) and exchange-rate effects related to the delay in inventory
%
14
26.7 27.326.3
25.4 25.7
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
Share of selling expenses• Share of selling expenses 25.7%,
up 0.3 percentage points− Negatively effected by commercial
investments and increased costs in Germany− Positively effected by lower costs in UK
%
15
48.1 48.8 49.0 51.3
64.7
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
Administrative expenses
• Administrative expenses increased in the quarter by approximately 10 MSEK as a result of the ongoing strategic review
• Expected administrative expenses of approximately 10 MSEK per quarter for the upcoming three quarters related to strategic review, launch and implementation
MSEK
16
330350
382 390349
024681012141618
Q313/14
Q314/15
Q315/16
Q316/17
Q317/18
Profit Q3• Operating profit amounted to
349 MSEK (390)
• Operating margin amounted to 12.7% (14.5)
• Earnings per share 4.28 SEK (4.84)
Operating profitMSEK
Operating margin%
17
5,4225,831 6,098
6,415 6,528
Q1-Q313/14
Q1-Q314/15
Q1-Q315/16
Q1-Q316/17
Q1-Q317/18
Sales Q1-Q3• Sales 6,528 MSEK, up 2%
− Sweden +1%− Norway +2%− Finland +9%− Outside Nordic countries -14%*
• Sales up 3% in local currencies − LFL growth flat
• 11 additional stores net compared to end of period last year (8)
MSEK
*Effected by store optimization in the UK
19
+2%
549604 633
592 574
0
2
4
6
8
10
12
Q1-Q313/14
Q1-Q314/15
Q1-Q315/16
Q1-Q316/17
Q1-Q317/18
Profit Q1-Q3• Operating profit amounted to
574 MSEK (592)• Operating margin amounted to 8.8% (9.2)• Earnings per share amounted to
7.02 SEK (7.28)
Operating profitMSEK
Operating margin%
20
Investments• Total investments 422 MSEK (192)
− MatHem investment 224 MSEK− New stores and refurbishments
67 MSEK (91)− IT-systems 89 MSEK (78)
MSEK
120147
198 192
422
Q1-Q313/14
Q1-Q314/15
Q1-Q315/16
Q1-Q316/17
Q1-Q317/18
21
22
Strong financial position• Cash flow from operating activities was
772 MSEK (763)− Inventory 1,880 MSEK (1,617)− Inventory turnover rate DC 6.8 (6.5)
• Cash flow after investments and financing activities of -40 MSEK (145)
• Net cash holdings of 584 MSEK (753)
438478 495 511 518
Feb13/14
Feb14/15
Feb15/16
Feb16/17
Feb17/18
February sales• Sales up 2% to 518 MSEK
− Sweden +2%− Norway -1%− Finland +9%− Outside Nordic countries -7%*
• Sales up 3% in local currencies • LFL sales flat• 12 additional stores net compared
to end of February last year (9)
MSEK
*Effected by store optimisation in the UK
24
+2%
25
Summary Q3• We delivered the best Christmas sales ever
in a fast changing market • Many activities and new initiatives to further
develop our customer offering, customer meeting, and sales channels− both in the short-term and long-term
• Long-term plan for growth to be presented at Capital Markets Day on 3 May